Fix and Flip Case Study: $67K Profit on a Jacksonville Ranch

This walkthrough illustrates how a typical fix and flip deal gets structured, financed, and executed using private lending. The numbers are based on a real deal profile from the Jacksonville, Florida metro area, anonymized to protect borrower privacy.

Property: 3-bedroom, 2-bath ranch-style single-family home in a suburban Jacksonville neighborhood. Built in 1988, approximately 1,450 square feet. The property was purchased from an estate sale and had not been updated in over 20 years. Original kitchen, worn carpet, outdated bathrooms, and minor roof damage from a recent storm.

Purchase price: $185,000 Rehab budget: $52,000 After-repair value (ARV): $340,000 Total project cost: $237,000 Loan-to-cost (LTC): 90% Loan amount: $213,300 (90% of $237,000) Cash to close: Approximately $31,700 (down payment + closing costs + insurance) Hold period: 5.5 months (rehab + listing + buyer closing)

Three factors made this deal attractive from an underwriting perspective.

First, the ARV was well supported. Five comparable sales within a half-mile had closed in the prior 60 days between $325,000 and $355,000 for updated 3-bed ranches in the same school district. The $340,000 ARV was conservative relative to the comp set, sitting at the median rather than the top.

Second, the rehab scope was straightforward. The property needed cosmetic and moderate updates, not structural work. The scope included a full kitchen remodel ($14,500), two bathroom remodels ($8,200), new LVP flooring throughout ($5,800), interior and exterior paint ($4,200), roof patch and new gutters ($3,800), new HVAC system ($6,500), landscaping and exterior cleanup ($3,000), and a 15% contingency ($6,000). No permits were required for the interior work, and the roof repair was covered under a standard contractor scope.

Third, the borrower had a clear exit strategy. The Jacksonville market at the time had average days-on-market of 22 days for updated homes in this price range. The borrower planned to list at $345,000 and close within 45 days of listing. The actual timeline came in close to plan.

The loan was structured as a fix and flip bridge at 90% LTC with 100% of rehab funded through an escrow holdback. Here is how the capital stack broke down.

Loan amount: $213,300 Interest rate: 10.75% (interest-only monthly payments) Origination fee: 2 points ($4,266) Term: 13 months Rehab draws: 4 scheduled draws released after third-party inspection

The borrower brought $23,700 to closing as a down payment (10% of total project cost) plus approximately $8,000 in closing costs covering origination points, title, appraisal, insurance, and prepaid interest. Total cash to close was roughly $31,700.

Rehab funds were held in escrow and released in four draws. The draw schedule was tied to completion milestones: demolition and rough-in, kitchen and bathroom installation, flooring and paint, and final punch list and cleanup. Each draw required a third-party inspection confirming work completion before funds were released. This protects both the lender and the borrower by ensuring work quality before additional capital goes out the door.

Monthly carrying costs during the hold period included interest payments of approximately $1,912/month, property taxes of $310/month, insurance of $175/month, and utilities of $200/month, totaling roughly $2,597/month.

The renovation took 14 weeks from contractor start to final walkthrough. Here is the approximate timeline.

Weeks 1-2: Demolition, debris removal, and rough-in for kitchen plumbing relocation. First draw requested. Weeks 3-5: Kitchen cabinet and countertop installation, bathroom demo and tile work, HVAC replacement. Second draw requested. Weeks 6-9: LVP flooring installation throughout, interior paint, bathroom fixture installation, electrical updates (new outlets, LED recessed lighting). Third draw requested. Weeks 10-12: Exterior paint, roof repair, gutter installation, landscaping, driveway pressure washing. Weeks 13-14: Final punch list, deep cleaning, staging, and photography. Fourth and final draw requested.

The project came in $2,800 over budget due to unexpected plumbing repairs discovered during the kitchen demo. The 15% contingency absorbed this without requiring additional capital from the borrower.

The property was listed at $345,000 and received two offers within 10 days. The accepted offer was $340,000 with a conventional buyer closing in 32 days.

Here is the full profit and loss breakdown.

Sale price: $340,000 Less selling costs (8.5%): -$28,900 (agent commissions, transfer tax, title, buyer credits) Net sale proceeds: $311,100

Less total project costs: - Purchase price: $185,000 - Actual rehab cost: $54,800 ($52,000 budget + $2,800 overage) - Origination fee: $4,266 - Carrying costs (5.5 months): $14,284 - Closing costs (buy side): $3,700 Total cost basis: $262,050

Net profit: $49,050 Cash invested: $31,700 Cash-on-cash return: 154.7% Annualized return: 337.5%

The borrower invested $31,700 of personal capital and earned $49,050 in net profit over 5.5 months. That translates to a 154.7% cash-on-cash return, or an annualized return of roughly 337% if the same capital could be recycled into similar deals throughout the year.

Several takeaways apply broadly to fix and flip investors.

Conservative ARV wins. The borrower could have argued for a $355,000 ARV based on the top comp, but pricing at $340,000 meant a faster sale and less carrying cost. The 10-day offer timeline saved over $5,000 in holding costs compared to a 60-day listing period.

The contingency matters. The $6,000 contingency absorbed the $2,800 plumbing surprise without requiring a scope change or additional capital call. Investors who budget zero contingency inevitably face a cash crunch mid-project.

High LTC amplifies returns. At 90% LTC with 100% rehab funded, the borrower only needed $31,700 in cash. If the same deal required 20% down, the cash requirement would have been roughly $55,000, reducing the cash-on-cash return from 155% to 89%. Leverage matters, but only when the deal has enough spread to absorb the cost of that leverage.

Speed to close matters in competitive markets. The borrower closed on the purchase in 8 business days. The estate executor had two other offers but chose the AssetLift-financed buyer because of closing certainty and speed. In a market where desirable distressed properties attract multiple bids, the ability to close fast is a competitive advantage that directly translates to deal flow.